A lease finance arrangement is simple to negotiate and free from cumbersome procedures with faster and simple documentation. As against it, institutional finance and term loans require compliance of covenants, formalities and a bulk of documentation, causing procedural delays.
By suitable structuring of lease rentals, a lot of tax advantage can be derived. If the lessee in a tax paying position, the rental may be increased to lower his taxable income. The cost of the more rapidly than in a case where the asset is owned allowable at the prescribed rates. If the lessor is in a tax paying lowered to pass on a part of the tax benefit to the lessee·. Thus, rentals on can be suitably adjust for postponement of taxes.